Thorofare Capital has funded an $11,675,000 fixed rate bridge loan for the acquisition and renovation of a Residence Inn by Marriott located in South Bend, Indiana, as well the refinance of a Residence Inn by Marriot located in Winston-Salem, North Carolina (the “Portfolio”). The structure consists of an initial funding of $9,873,000 with $1,800,000 reserved for a PIP budget. The sponsor acquired the Residence Inn South Bend for $5,750,000 and contributed a significant amount of additional equity at closing. Concurrent to the acquisition, the sponsor retired $4,900,000 of debt secured by the Residence Inn Winston-Salem and utilized imputed equity towards the downpayment on the South Bend location. The sponsor’s plan is to refinance Thorofare’s bridge loan with permanent financing for the Portfolio once the South Bend PIP is complete and the hotel is stabilized.

The Residence Inn South Bend, built in 1988, is comprised of 10 rectangular‐shaped two and three story guestroom buildings. The buildings contain a total of 80 guestrooms. An additional building, referred to as “The Gatehouse,” is two‐stories and contains the reservation desk, offices, dining area, commercial prep kitchen, sundry shop, fitness center, meeting rooms, and guest laundry facilities. Combined, the buildings total approximately 92,000 SF of floor area and are situated on a 4.99‐acre parcel. As of May 2015, the T-12 occupancy was 67.8%, T-12 ADR was $117.71, and the T-12 RevPAR was $79.77, resulting in these performance metrics exceeding 100% of all indices. The sponsor signed a new 10-year franchise agreement with Marriott International at closing.

Built in 1986, the Residence Inn Winston Salem University Area contains 88 guestrooms, a clubhouse, a complimentary breakfast/evening reception area, housekeeping laundry, a fitness center, and a business center. The hotel is centrally located on North Point Boulevard in Winston-Salem, North Carolina. Located 1.3 miles from Wake Forest University and 4 miles from downtown Winston-Salem, the property benefits from strong business traveler patronage and significant student visitation related stays. The hotel, fully renovated in 2013, averaged a T-12 occupancy of 78.5%, a T-12 ADR of $112.99 and a T-12 RevPAR of $88.66, resulting in these performance metrics exceeding 100% of all indices. The sponsor has approximately 9 years remaining on the franchise agreement with Marriott International. The sponsor acquired the Residence Inn Winston-Salem in Q2 2014 and has since nearly doubled cash flow. The property was previously lender-owned and underwent a full PIP renovation prior to its sale. The hotel has continued to ramp up, which is a product of both the renovation and the excellent market growth currently being experienced in Winston-Salem. The Competitive Set shows RevPAR growth of 9.3% YTD through May 2015 and 8.9% for the trailing twelve months.

Thorofare’s non-recourse acquisition facility includes an initial term of one year with an extension option. The interest-only structure was sized to 75% of the total project capitalization, which includes a PIP reserve, a CapEx reserve, as well as additional structuring for seasonality reserves.

The sponsor is an affiliate of Portfolio Hotels & Resorts, a Chicago-based hotel investment and management firm operating in excess of 3,000 rooms across the country. The firm specializes in all lodging asset classes including limited service hotels, full service resorts, extended stay properties, and boutique hotels.